IDLC Finance profit jumps 44% over treasury income in Jan-Mar
Highlights
- Profit jumps 44% to Tk50.87cr
- Earnings per share Tk1.22
- Classified loans Tk554cr
- Shares close at Tk30.40
IDLC Finance PLC, a leading non-bank financial institution (NBFI), reported a 44% rise in profit for the January-March quarter of this year, primarily driven by strong returns from investments in government securities, commonly known as treasury bonds.
According to its unaudited financial statement, the company posted a consolidated net profit of Tk50.87 crore in the first quarter, up 44% from the same period last year.
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As of the end of March, its consolidated earnings per share stood at Tk1.22, compared to Tk0.85 in the same quarter a year earlier.
The NBFI reported earnings of Tk65.87 crore from government securities, including capital gains – a 508% year-on-year increase – as interest rates on treasury bonds rose to a decade-high of around 13%.
However, its net interest income – the core segment of its operations – fell by 25% year-on-year to Tk95.79 crore in the same quarter, due to rising borrowing costs.
Over the year, its interest paid on deposits and borrowings jumped 44% to Tk298 crore, while interest income from loans rose 18% to Tk394 crore compared to the previous year.
The NBFI's total disbursed loans and advances stood at Tk11,856 crore, while total deposits reached Tk77,705 crore – up by 4% and 10%, respectively, from the previous year.
Amid challenges in the NBFI industry, IDLC Finance's classified loans rose by 7% to Tk554 crore in the January-March quarter, with a ratio of 4.67% – well below the sector average.
Earlier, the NBFI recommended a 15% cash dividend and a 5% stock dividend for the previous year.
To approve the dividend, the company will hold its annual general meeting on 3 June, with the record date set for 12 May.
Its share price closed 2.36% higher at Tk30.40 on 8 May on the Dhaka Stock Exchange.
